Commodity Futures


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Commodity Futures Contract

An agreement to buy and sell a commodity at a certain date at a certain price. For example, Investor A may make a contract with Farmer B in which A agrees to buy a certain number of bushels of B's corn at $15 per bushel. This contract must be honored whether the price of corn goes to $1 or $100 per bushel. Commodity futures contracts can help reduce volatility in the normally volatile commodity markets, but contain the risks inherent to all speculative investing. These contracts may be sold on the secondary market, but the person holding the contract at its end must take delivery of the underlying. See also: Carrying charge, Options contract.

Commodity Futures

Contracts to buy or sell a fixed amount of a commodity (wheat or soy beans, for example) for a fixed price at a future date.
References in periodicals archive ?
I think we will get the approval during 2018, then the EGX board will take steps to set the commodity futures exchange," he stated.
It invests directly in a portfolio of exchange-traded commodity futures contracts that represent the main commodity sectors and are among the traded futures contracts in the global commodity markets.
These products are now listed on the ICE trading platform, which is also home to the ICE Futures US soft commodity futures and options that include Sugar 11, Cocoa, Coffee, Cotton and Frozen Concentrated Orange Juice contracts.
In particular, the synchronized boom and bust cycle in 2007-8 in a large number of commodities across the energy, metal, and agricultural sectors has led to a heated debate regarding whether speculation in commodity futures markets caused a bubble in commodity prices.
So, the article has an aim of providing knowledge through facts and figures to the investors about the Indian Commodity futures market as an investment option and its inclusion in the traditional asset portfolio.
Industry Organization Membership: Japan Securities Dealers Association, The Financial Futures Association of Japan, The Commodity Futures Association of Japan
Tim Knight, Global head of BNP Paribas Commodity Futures Limited, said, 'We have recently seen an upsurge in client demand for the provision of clearing access for power futures contracts.
As the largest commodity futures broker in Japan, Dot is utilizing its expertise in global commodity markets to educate university students on the workings and importance of commodity markets.
Its clients can now trade FOREX, equities, metals, fixed income, energies, and other commodity futures and options globally using single account.
Anthony Keeling has started his commodity trading career as early as 1970 as an account executive in one of the Commodity futures trading firm in the US.
Institutional investors' use of commodity futures to hedge against stock market risk is a relatively recent phenomenon.
The Tokyo Commodity Exchange is planning to take over the farm market operations of the Tokyo Grain Exchange as proposed by the Japan Commodity Futures Industry Association, the presidents of the two exchanges said at separate press conferences Tuesday.

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